Access charges in electricity: an obstacle to energy transition

Access charges in electricity: an obstacle to energy transition

On Thursday June 27, Frontier Economics presented a proposal to change the methodology to calculate electricity distribution access charges for residential customers in Spain.

Anticipating the consultation about to be launched by the energy regulator, CNMC, Frontier analysed the current access charges methodology and analysed its cost reflectiveness in the case of new technologies like the heat pump, the electric vehicle, the home batteries, decentralised renewable generation, and new sector governance represented by energy communities and aggregators.  It also proposed a complementary methodology based on short run marginal cost to better reflect congestion in the networks.

The study, directed by Fernando Barrera Rey with the assistance of Ana Ramos Fernández and David Muñoz Martínez, was presented before the industry and discussed in a panel discussion moderated by Claudio Aranzadi and with the participation of:

  • Joan Groizard, from the Government energy efficiency agency IDAE;

  • Laureano Álvarez, from Deloitte

  • Javier Arranz, from the consumer association OCU;

  • Xavier Farriols, from independent supplier Factor Energía; and

  • Pedro Mielgo, from Red Madrileña de Gas

Click here to view the study in Spanish.